Effect Of Health Commodity Supply Chain Risk Management Practices on Health Commodity Supply Chain Performance: The Case of Ethiopian Pharmaceutical Supply Service in Ethiopia
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Date
2022-06
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Addis Ababa University
Abstract
Health Commodities Supply Chain Risk management is a risk assessment and treatment process that is critical to improving the various aspects of health commodities supply chain management performance. Ethiopian pharmaceutical supply service (EPSS), as the sole supplier of program health commodities and the primary supplier of Revolving Drug Fund health commodities to all public health facilities in Ethiopia, should prioritize health commodities supply chain risk management because any risk will have an immediate impact on availability of vital medicines and human life. The aim of this study is to assess effect of HCSCRM practices on EPSS’s HCSC performance. The study used explanatory research design. A combination of stratified and simple random sampling were used, and 126(91.3%) responses were obtained. The collected data were analyzed using both descriptive and inferential statistics such as percent, mean, standard deviation, correlation and linear regression. The results revealed that supplier risks poses a much higher risk in EPSS supply chain, followed by demand risks, process risks and finally environmental risks. The risk analysis across national EPSS, central, and hubs shows supply risk is a greater concern at the hubs, whereas demand risk is the priority risk in the central EPSS. Based on the correlation result supply risks, demand risks, and process risks, strongly negatively correlated with HCSCM performance of EPSS and all risk categories are statistically significant. Whilst HCSCR assessment practices and treatment practices were strongly positively correlated with the HCSCM performance of EPSS. Finally, the study discovered that organizational barriers have a significant effect at the central EPSS than the hubs whereas technological barriers pose more effect on the hubs than the center. Regression analysis detected that supply risks, demand risks, and process risks all have a significant negative impact on performance. EPSS only used the HCSCRM to a limited extent, but it has a positive effect on performance when implemented properly. As a result, it is recommended that the organization may intensify systematizing and implementing the risk assessment and management strategies developed by the organization in 2021.
Keywords: Supply Chain risks, risk management, Performance, barriers of risk management